Home Buying in Concord>Question Details

Valia Johnson, Home Buyer in Pennsylvania

My Aunt is moving in with her daughter. How do i change over the mortgage to my name? Also, does bad credit a factor? I make a good salary though.

Asked by Valia Johnson, Pennsylvania Thu Feb 9, 2012

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@Richard: Thanks for the heads-up on "zero-overlays". Portfolio lender?
0 votes Thank Flag Link Fri Feb 10, 2012
Steve you have done your homework and are correct, but almost all FHA lenders have tighter guidelines than required by HUD, they add what is called "overlays" to the guidelines. I happen to work for the only company I know of with no overlays. Although several lenders broker loans to us, to get the easiest underwriting you need to call me directly.
0 votes Thank Flag Link Fri Feb 10, 2012
Valia:

Here's a 2nd link indicating you may be able to buy with:

A 3.5% down payment if you have a min credit score of 580+.

A 10% down payment if you have a min credit score of 500-579.

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/fi…

-Steve
0 votes Thank Flag Link Thu Feb 9, 2012
Valia:

Since your goal is to own the home you should simply purchase the home yourself. I assume your Aunt is moving in with her daughter to either reduce costs, be cared for or a combination of the two. If you buy the home outright you avoid any legal issues down the road and I'm sure your Aunt will feel more secure knowing she has reserve funds for her care and no more property related payments. Plus, as Sally/Neil comment, most mortgages are not assumable and legal issues can arise by just taking over payments.

The best way to proceed if you are interested in purchasing the property is to obtain a true Pre-Approval: http://www.Steven-Anthony.com/GettingStarted

Of course, "bad credit" is a factor; however, there are different levels of “bad credit”. For example, FHA financing only requires a 580 credit score to qualify (and can be lower if you are putting down 10%), and you indicate you make a good salary! From http://portal.hud.gov/hudportal/HUD?src=/press/press_release…

"New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%."
[Confirm this information with a FHA Loan Broker/Banker]


Regarding Credit Scores:
Not sure you should move forward because of your current FICO credit score range?
See the "FICO® Score Estimator" at http://www.myfico.com/FICOCreditScoreEstimator/Estimator.aspx

Back when I was mortgage brokering/banking I found this to be about 85% accurate! Of course, if you move forward with a true Pre-Approval you will know your actual FICO mid-score to used (there are three scores, lenders use the “middle score” for qualification purposes), but this might be a good place to start!

Best of luck!

-Steve
0 votes Thank Flag Link Thu Feb 9, 2012
Not if the bad credit is your aunt’s, if it is yours it is.
0 votes Thank Flag Link Thu Feb 9, 2012
Well if the loan is assumable you have to meet the assumption guidelines. If you not, you can have her transfer title to your name pay the mortgage for 12 months then refinance the loan in your name. You will need descent enough credit to qualify.
0 votes Thank Flag Link Thu Feb 9, 2012
Valia,

If what you want is to continue paying the mortgage that is in someone elses name you can do that. Once that mortgage is paid in full it's gone. Getting the house into your name involves having the person who's name it is in now to "sign it over" to you. What you have to worry about is if that person should pass while you are paying it off. That person could sign it over to you now but chances are that would trigger a clause by the bank to make the entire loan payable instantly. I would suggest you consult an attorney NOW and have him/her create an agreement between you and the person who holds title.

The other option is to simply "buy" the house from the current owner. That involves you qualifying for a new loan. If there is substantial equity in the property and you have a good income you might still qualify even if you have poor credit. You wont know until you try and it costs nothing to try.
0 votes Thank Flag Link Thu Feb 9, 2012
I'm confused by your question and not sure what you're trying to accomplish. But either way, the answer is NO, you can't just switch a mortgage over to someone elses name. And yes, credit is a big factor.
0 votes Thank Flag Link Thu Feb 9, 2012
I would like to own the house when i finish paying the mortgage off.
0 votes Thank Flag Link Thu Feb 9, 2012
Why would you want to change the mortgage to your name?
0 votes Thank Flag Link Thu Feb 9, 2012
Alan May, Real Estate Pro in Evanston, IL
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